Elite realty market is growing but service lags behind

 

Mortgage saves money

One more novelty that has appeared lately is the increase of purchases with mortgages. Their share adds up to about half of the total number of bargains. However, the reason for the use of this tool is quite different than in other sectors.

The thing is that more often people use mortgages not because they do not have their own money, but because it is invested in business, and it is easier for them to get a loan than to withdraw the money. They take a mortgage for rather a short period of time, and sometimes even pay it back ahead of schedule.

The current elite-class realty market in Russia is focused on the buyer. And the buyer has changed a lot and has become competent and demanding. He wants a seller to observe all the standards characteristic of this type of realty.

 

Peculiarity of elite house construction

Elite housing preserves its status, but this does not mean that nothing changes. The boundaries between different classes of realty are dithering. 

— In about 10 years, the Moscow residential stock will look different, Diana Nelipovskaya, Sales Director of the Pioneer GC, predicts.

Elite-class realty is gradually moving away from the centre of the city, and there are even several compounds outside the MRR where the flats sell well. Mostly, however,  elite housing is built in the centre.

A characteristic feature of this is that developers try to erect houses together with the surroundings that are of great importance, including parking spaces, schools and nurseries, etc. All these factors influence the price.

Elite realty market is growing but service lags behind

 

Young people prevail

The image of the buyer has changed lately. Ten years ago they were mainly top officials and representatives of large businesses. Presently, the community has become younger and more educated. They have travelled abroad and know what elite realty looks like, and some of them even own it abroad. They do not want to have anything worse in Russia.

Many of them consider time to be the most important resource, and do not therefore want to deal with any repairs but instead want to move into a ready-to-live flat.

As such, 13% of all lots are sold completely finished these days. The buyers also carefully check every centimetre of the new-bought realty. 

 

But service is weak

Market participants remark that it is elite realty purchasers who appreciate services most of all and, in turn, enjoy different innovations that lead to its becoming cheaper. However, according to Sergei Menn, Commercial Director of the Domopult company, in many elite houses their service is at the same level as 10-15 years ago.

The quality of the service lags behind modern standards, and there are few additional services. In the USA the annual market is evaluated as much as $30—35 bln, and in Russia it is at an embryonic stage. But these services are demanded, with the greatest being required by the young: they want to get services based on digital technologies.

On the whole, the situation on the market makes developers feel positive, and they hope for the growth of prices, with some of them even setting their sights on the maximum amount.

Vladimir GURVICH

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